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Germany – More transparency for staffing buyers

27 March 2013

The Department of Payment Security (IZS), which monitors the payment of social security contributions in the German temporary staffing sector, has widened its service offerings to increase greater transparency for staffing buyers.

The IZS allows client companies of staffing firms to check whether all social contributions have been paid to health insurers. If a staffing firm fails to make the necessary payments, the hiring company may be liable to pay any outstanding payments regarding social contributions. This is known as subsidiary liability, according to the Code of Social Law (§ 28e Abs. 2 SGB IV). 

The IZS has now launched a new information service for client companies to monitor whether a staffing firm has kept up with payments to health insurers. Interested parties can register for free for the service, with the IZS sending monthly updates on the progress made regarding the staffing firm’s duty to pay health insurers.

Client companies can therefore minimise the risk of subsidiary liability and avert financial disadvantages, the IZS said. Staffing firms such as Randstad and Orizon have signed up to the IZS, giving client companies greater transparency while also improving customer service.

CEO at Orizon, Dieter Traub, said: “Our clients and interested parties really value being able to view current and past information of German health insurers. This creates extra transparency and trust. With the new information service, firms will be able to access this valuable information more easily.”

From January 2012 to March 2013, over 6,000 payments have been reviewed with the data made available online on the IZS website.

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